PEG’s detailed knowledge of a wide range of solar power plant sizes and diverse financial partnership strength and operational expertise ensures the long term economic viability of your solar installation.
Our project finance team will navigate through the complex maze of financial options and determine the best option for your specific needs. Our proprietary solar asset calculations provide you with transparent short and long term benefits to help you reach an educated decision. Our experts will review your electricity usage, future needs, property conditions and financial goals amongst other criteria, while evaluating the rebates and incentives available to you and recommend the best financial solution.
For a company that has available capital or access to traditional financing through real estate financing, capital financing or a line of credit, there can be advantages to self-financing a renewable energy project. When a project is self-financed, a company keeps the tax credits and incentives. For a company with strong cash flow and profit, this may be particularly attractive, as the tax credits and accelerated depreciation of the solar project can provide an immediate tax benefit that will offset the cost of the project. The company will then be able to own and reap the benefits of the renewable energy produced by the system over the long term. Investment paybacks on certain solar energy systems occur within 5 years.
Debt or Equity Financed
Precise Energy Group has assisted its qualified customers to access debt on favorable rates for their solar energy systems. Our project finance team will even work with your accountant or current financial institutions to provide them with all the documents and short and long term economic analysis to facilitate you in acquiring financing for your project.
Larger projects may require the participation of multiple financial entities to consummate a project. PEG has the flexibility to either bring debt financing or equity participation, or work on a JV model where everyone involved benefits. With several years of experience in project financing, strong financial backing, and creative financial structuring gives the solar project a predictable and profitable future. Well established entities can take advantage of this model of leveraging your creditworthiness status to increase your ROI significantly. Our project finance team will work with you to understand and structure the most lucrative position.
Power Purchase Agreement
A Solar Power Purchase Agreement (SPPA) allows a private or public entity to purchase solar power at more favorable rates than their current utility rates from a private solar company. Under the SPPA, a public agency, REIT or a business agrees to host the solar energy system on its property and pay reduced comparable utility electricity rates for the electricity generated over the long term ranging from 15 to 25 years. The solar energy system owner takes responsibility for maintenance and operation of the system. Typically, there is minimal or no outlay of cash from the host, while securing a predictable energy cost and hedging against escalating utility electric rates.
Large open roof space, or land owners may take advantage of a long term SPPA and in some instances also create added revenue by leasing what would otherwise be non-revenue producing real estate. SPPA?s have complex requirements and understanding the qualification factors, risks and benefits is important. PEG?s finance team will help you analyze if a SPPA model is suitable for your needs.
Solar Power Lease
Solar Power Leases are available to well-established, creditworthy companies and nonprofit organizations. Government entities, churches, schools and 501c3 structured entities may benefit from this model. PEG works with its financial partners to provide financing for a solar system at a fixed payment for the term of the lease, which ranges from 5 to 8 years. Normally no additional collateral is required other than the solar equipment and is most suited for smaller solar installation sizes than an SPPA and are much simpler and less costly to arrange. A minimum system cost of $500,000 is required.